Thomson Reuters Corp has announced the launch of a gauge tracking the sentiment of cryptocurrency traders. The metric will track and examine discourse regarding bitcoin on hundreds of major social media websites and news outlets in order to estimate the majority sentiment of the bitcoin and cryptocurrency markets.

Thomson Reuters Reveals Marketpsych 3.0

Thomson Reuters Corp in partnership with Marketpsych Data LLC has announced the launch of a new version of their Marketpsych Indices sentiment data feed, which now includes analysis of bitcoin market sentiment.

The new version, Marketpsych 3.0, has seen “Over 400 news and social media sites, many specific to cryptocurrencies” added to the software’s feed. Thomson Reuters claims that “Each site is scanned and scored in true-time” in order to ascertain “market-moving sentiments and themes.”

Austin Burkett, the global head of Thomson Reuters’ Quant and Feeds, has stated “News and social media are driving the investment and risk management process more than ever with the continuing rise of passive and quant-driven trading,” adding that “As the financial marketplace rises in complexity, so too does the need to provide our clients with not only the relevant data, but the tools to help them manage and analyze that data. MarketPsych 3.0 helps deliver another layer of analysis and value-add in the investing process.”

Thomson Reuters Introduces Cryptocurrency Services

Thomson Reuters provides insights into traditional and emerging asset classes, with the company currently publishing “prices for Bitcoin, Ethereum, Litecoin, Ripple and Bitcoin Cash.” In 2016, Thomson Reuters introduced BlockOne IQ – a tool designed to allow traders to use Reuters’ market data systems to analyze blockchain-based currencies.

The announcement of Marketpsych 3.0 comes a week after Fundstrat executive Tom Lee revealed a new bitcoin sentiment gauge called the “Bitcoin Misery Index.” Mr. Lee unveiled the index during an interview with CNBC, proclaiming that the index currently reads at 18.8 – the lowest it has been since 2011.

Mr. Lee described the index as a contrarian indicator, stating that “The last four times this was below 27 […] there was not a single instance with bitcoin not up 12 months later.”

Do you think that sentiment gauges are a useful trading tool? Share your thoughts in the comments section below!

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